Calculate the current yield for each bond

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Jason Greg is a recent retiree who is interested in investing some of his savings in corporate bonds. Listed below is the bond he is considering adding to his portfolio.
Bond B has a 10% semiannual coupon, matures in 12 years, and has a $1000 face value.
Bond has a YTM of 10%
a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, discount of par.
b. Calculae the price of each of this bond.
c. Calculate the current yield for each bond.
d. If the yield to maturity for the bond remains at 9%, what will be the price of the bond 1 year from now?

e. Price each bond and explain how the number of years to maturity and the coupon rate affect the current price of bonds. Assume YTM of 7%.
1. A 4-year bond with a 9% annual coupon
2. A 4-year bond with a zero coupon
3. A 15 year old bond with a 9%annual coupon
4. A 15 year bond with a zero coupon

Reference no: EM13680891

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